According to Cambodgemag, a Paris Bar lawyer working in Phnom Penh outlines key rules for foreign investors, from company ownership and land restrictions to 20% corporate tax and 10% VAT.
According to Cambodgemag, which interviewed Wissam Mghazli, a member of the Paris Bar and director of Komon Cambodia, foreign investors can in most sectors own 100% of the capital of their company in Cambodia. The limited liability company is described as the most common legal form. He also notes that the economy is largely dollarised and that English is widely used in business. On property, the interview is clear on one point: foreigners cannot, in principle, directly own land in Cambodia. Solutions such as a long-term lease, a trust or certain corporate structures can be considered, subject to the applicable legal conditions. Anyone planning a real estate purchase or investment should therefore check the structure carefully against current rules. On taxation, the interviewee cites a corporate income tax rate of 20% and VAT of 10%. Certain qualifying investment projects can benefit from tax incentives, including an exemption of up to nine years depending on the applicable regime. A tax treaty between Cambodia and France is said to be under discussion. He also points to the 2021 investment law and the 2023 tax law as examples of the country's evolving legal framework. The article is an interview and presents the lawyer's own overview rather than an official legal text; details should be confirmed with local advisers.